Does the contractor have workmen’s compensation insurance on all his workers and subcontractors?
Make sure everyone on your worksite is insured. Please Note: If your contractor does not have all of these basic credentials, you, the homeowner, could be liable for everything that is done or happens on your property. When you, the homeowner, obtain your own building permit, you are also required to have sufficient liability and worker’s compensation insurance on all the people that work on your project. The value of your home may be placed in jeopardy to cover the risk of Worker’s Compensation Insurance and/or builder’s risk liability. As many homeowners do not own their home outright, your lending institution may also require you to take out builders risk insurance. They could foreclose on the property if you refuse. In addition, if you, the homeowner, do not obtain a building permit and proceed with an unlicensed contractor or remodeler, you are fully responsible and liable for everything that happens on your property. It is best to make all your design and material decisions befor
